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Nestle
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NAME:JALDHI RUSTAGI
NESTLE
Nestle Organizational Structure
INTRODUCTION
Nestle is a Swiss multinational nutritional and health-related consumer goods company
headquartered in Vevey, Switzerland. It is the largest food company in the world.
Nestle's products include baby food, coffee, confectionery, bottled water, breakfast
cereals, dairy products, ice cream, pet foods and snacks. 29 of Nestle's brands have
annual sales of over 1 billion CHF (about US$ 1.1 billion), including, Nescafe, Kit Kat,
Nespresso, Smarties, Nesquik, Stouffer's, Vittel, and Maggi. Nestle has around 450
factories in 86 countries, and employs around 328,000 people all around the world. It is
one of the main stockholders of L'Oreal, the world's largest cosmetics company. Nestle
was formed in 1905 by the merger of the Anglo Swiss Milk Company, established in
1866 by brothers George Page and Charles Page. The company grew significantly
during the First World War and again following the Second World War, increasing its
offerings beyond its early condensed milk and infant formula products. The company
has made a number of corporate acquisitions, including Crosse & Blackwell in 1950,
Findus in 1963, Libby's in 1971, Rowntree Mackintosh in 1988 and Gerber in 2007. In
2011, Nestle was listed Number one in the Fortune Global 500 as the world's most
profitable corporation. With a market capitalization of $ 200 billion, Nestle ranked
Number 13 in the FT Global 2011. (Nestle2011)
Nestle System and Organization Structure
A company's organizational chart typically demonstrates relations between people
within an organization. Such relations might include managers to sub-workers, directors
to managing directors, chief executive officer to various departments, and so forth.
When an organization chart grows too large it can be split into smaller charts for
separate departments within the organization.
2. The different types of organization charts include:
Hierarchical
Matrix
Flat (also known as Horizontal)
Nestle Company is a decentralized organization that is organized according to the
matrix structure. Nestle as a decentralized organization permits to subordinate branches
to enjoy a proportionately high-level of independence. Although it still makes major
strategy decisions at the headquarter level, daily operations are left up to subordinate
branches to derive and perform. The responsibility for operating decisions is push down
to local units (Broeckx & Hooijberg 2008).
In organization structure, Complex system is a system that is comprises a large number
of entities that display a high level of nonlinear interactivity. There are number of basic
observations that have been made through the examination of complex systems, mainly
using computer simulation and the mathematic of non-linearity. (Unden 2001)
Complex systems are usually open systems. Nestle, over its long historical
development from a small village operation to the world's leading food Company, has
illustrate an excellent capability to adjust to an ever-changing external environment,
without losing its basic beliefs and core values, so important for long-term success.
Over the years to come, this capability will continue to be challenge even more as
Nestle is growing in size and complexity up to a dimension, which demands a
continuous development of its organisation and of the way in which it run (Christopher &
Yannicrumar 2008).
Nestle System Methodology and Objectives
Nestle objectives are to be known as a world leader in Nutrition, Wellness, Health,
trusted by all its stakeholders and to be referenced for financial performance in its
industry. The company believes that it is not just about size, it is also about behavior;
and they recognized that trust is earned only over a long period of time by systemically
delivering on their promises. These objective and behaviors are summarizing in the
simple phrase: "Good food, Good life", a phrase that sums up the company business
aspiration.
3. Management
Nestlé has a Board of Directors, led by our Chairman Peter Brabeck-Letmathe, who
was the former Nestlé CEO. There are 14 members of the Board of Directors. Full
details of each member and the committees that they operate within can be found in
ourBoard of Directors section.
The Nestlé Group is managed by geographies - Zones EMENA (Europe, Middle East
and North Africa), Americas and Asia/Oceania/Africa - for most of the food and
beverage business, with the exceptions of our globally managed businesses, which
include Nestlé Waters, Nestlé Nutrition, Nespresso, Nestlé Professional and Nestlé
Health Science. We also have joint ventures such as Cereal Partners Worldwide and
Beverage Partners Worldwide.
Presence in India
NESTLÉ India is a subsidiary of NESTLÉ S.A. of Switzerland. With eight factories and a
large number of co-packers, Nestlé India is a vibrant Company that provides consumers
in India with products of global standards and is committed to long-term sustainable
growth and shareholder satisfaction.
NESTLÉ India set up its first manufacturing facility at Moga (Punjab) in 1961 followed by
its manufacturing facilities at Choladi (Tamil Nadu), in 1967; Nanjangud (Karnataka), in
1989; Samalkha (Haryana), in 1993; Ponda and Bicholim (Goa), in 1995 and 1997,
respectively; and Pantnagar (Uttarakhand), in 2006. In 2012, Nestlé India set up its 8th
manufacturing facility at Tahliwal (Himachal Pradesh).
The 4 Branch Offices located at Delhi, Mumbai, Chennai and Kolkata help facilitate the
sales and marketing activities. The NESTLÉ India’s Head Office is located in Gurgaon,
Haryana.
Nestle India Ltd./CEO
Suresh Narayanan
Nestle Worldwide
4. Nestlé S.A. is a Swiss transnational food and drink company headquartered
in Vevey, Vaud, Switzerland. It is the largest food company in the world measured by
revenues,and ranked 72 on the Fortune Global 500 in 2014.
Offices in Africa
America
Asia
Europe
Oceania
Nestlé’s Chief Executive Officer,
Paul Bulcke
Business Relationship between parent country and India
NESTLÉ has been a partner in India's growth for over a century now and has built a
very special relationship of trust and commitment with the people of India. The
Company's activities in India have facilitated direct and indirect employment and
provides livelihood to about one million people including farmers, suppliers of packaging
materials, services and other goods.
The Company continuously focuses its efforts to better understand the changing
lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition,
Health and Wellness through its product offerings. The culture of innovation and
renovation within the Company and access to the NESTLÉ Group's proprietary
technology/Brands expertise and the extensive centralized Research and Development
facilities gives it a distinct advantage in these efforts. It helps the Company to create
value that can be sustained over the long term by offering consumers a wide variety of
high quality, safe food products at affordable prices.
NESTLÉ India manufactures products of truly international quality under internationally
famous brand names such as NESCAFÉ, MAGGI, MILKYBAR, KIT KAT, BAR-ONE,
MILKMAID and NESTEA and in recent years the Company has also introduced
5. products of daily consumption and use such as NESTLÉ Milk, NESTLÉ SLIM Milk,
NESTLÉ Dahi and NESTLÉ Jeera Raita.
NESTLÉ India is a responsible organisation and facilitates initiatives that help to
improve the quality of life in the communities where it operates.